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PUBLISHER’SNOTE

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everal veteran lean practitioners— industry leaders in their categories who have been on their lean journeys for three to 15 years—recently hosted a “CEO Boot Camp,” which was designed to create a “live” experience for leaders new to lean on what it takes to personally lead a lean transformation. Most of the leaders on this trip were from companies that had already started to implement lean, but that implementation was not being spearheaded by them personally. One epiphany they had was that in order for the transformation to be broadreaching and successful, they would need to increase their own personal involvement in the process and master both strategic lean concepts and tactical tools. There were many such key nuggets that emerged at the conclusion of this lightning tour. Perhaps the most important “take away” is that lean is not a cost-reduction effort, but rather is a business strategy for growth. It’s not something that happens overnight and initial savings aren’t a signal to sit back and relax, but instead a call to work even harder. When a company chooses to undertake a lean transformation, its leadership must realize that lean works in the long term— lean must become a way of life.

Leading a Lean Transformation

A common trait observed among the host lean leaders at the companies visited was an unwavering trust in the process, despite failures or setbacks, and a ferocious patience to keep going, understanding that continuous improvement is just that—unending. When embarking on a lean journey, focus is critical. Taking a “shotgun approach” to lean is a big mistake. Leaders need to narrow and deepen the focus of the effort to take advantage of specific opportunities, like paying down debt or entering a new market. Focusing on a few critical areas will actually speed the rate of change in a way a broader, shallower approach can’t. Policy deployment takes a prominent place in a lean transformation. Although huge benefits can be generated in the first steps of a lean journey, the secret to sustained success is planning. And policy deployment is the means by which a company defines its goals and then aligns the entire organization to work toward a common cause. All of the attendees expressed their belief that personal participation or lack thereof could make or break the process. They learned that daily “walk throughs,” managing for daily improvement, and using daily metrics to measure progress and manage abnormalities are critical tools of lean (see Tech Talk, p. 10). It became profoundly clear to them that hour-by-hour visible charts are the backbone of the process—the means by which first-line supervisors can monitor the pulse of the plant and correct abnormalities in real time. Recognition that consistently “making the hour” means you’ll also “make the month” (and the year) was a profound revelation. Visual management is also closely tied in with these concepts. Using management tools that anyone can understand at a glance means that even an uninitiated workforce can contribute to lean improvements. It increases involvement across the board and limits mistakes caused by misunderstandings.

Another significant observation from boot camp attendees was that the cultures across the four companies visited were amazingly consistent. People were involved at all levels, teamwork was the rule and not the exception, and resources were clearly dedicated to the lean transformation efforts. Likewise, they all noted that a hallmark of a lean transformation is clear, significant, and measurable results. There’s no guessing if the lean methodologies are working. Real results—financial, physical, and cultural— can be observed, measured, and cataloged. A lean journey is not quick, nor is it easy. But what these CEOs learned is that committing to the journey and following through, remaining patient, and forging ahead with speed despite any failures will enable their companies to profit and grow— and achieve true excellence—in an increasingly competitive and global marketplace. In this issue you will read about demand segmentation in a lean value chain and how one company synchronized operations and order fulfillment to customer demand (p. 2). You will also find articles on the role of a steering committee (p. 5), eLearning (p. 6), using audits to sustain kaizen results (p. 12), and how one company realized significant savings by paying attention to energy use (p. 16). Successful lean organizations are learning organizations, and I hope you will find valuable lessons in these pages.

Anand Sharma, President & CEO TBM Consulting Group, Inc. asharma@tbmcg.com


Q1 .08

MANAGING TIMES

Publisher Anand Sharma: asharma@tbmcg.com Executive Editor William A. Schwartz: bschwartz@tbmcg.com Managing Editor Julie Poudrier: jpoudrier@tbmcg.com Featured Columnists Mike Caldwell Cathy Elias Joe Panebianco

Mike Serena Ken VanWinkle J.B. Williams

Contributors Stacy Aponte-Morris Cheryl Groves Nero Haralalka Gary Hoover Beth Ann Hunt Ken Koenemann

Don Pedersen Angela Scenna Reinhard Stück Noel Temple Mike Zsitnyar

Art Direction and Design IONA design www.ionainteractive.com Printing Carter Printing & Graphics, Inc. www.carterprintingnc.com Published Quarterly in Durham, NC 4400 Ben Franklin Boulevard Durham, NC 27704 TBM, the TBM logo, and LeanSigma® are registered trademarks of TBM Consulting Group, Inc. If you would like to receive this journal via email, send your vital information including email address to tbm@tbmcg.com On the cover: Consider that each step required to deliver product to your customer is a link in a chain. This is your value chain, and each link represents steps that add or subtract value from the products that follow the chain. A synchronized and optimized value chain gives a company a competitive advantage. Understanding true customer demand is a key step in leaning your value chain.

Todd Bell has been promoted to director

of continuous improvement for American Achievement Corporation’s C.B.I. division in Austin, TX. He’s currently working hard at restructuring the C.I. office. … Brian Ehricke of Appleton Papers in Appleton, WI, has been promoted to supply chain director for Appleton’s Technical Papers Division. … St Gobain Containers has named two World Class Manufacturing Managers: Todd Kearns of the Dolton, IL, plant and Gretchen Whitcomb of the Milford, MA, plant. Todd is also the KPO at the Dolton plant. … Sue Carter has been promoted to the position of KPO site coordinator for Gai-Tronics Corporation in Mohnton, PA. … Phillip Griffitts has been named plant manager for Hubbell Lighting’s Christiansburg, VA, operation. He was most recently plant manager in Eldorado, AR, and before that, KPO manager at the Christiansburg plant. … Energizer Corporation has several promotions to announce: Jeff Schroeder, former plant manager at the Bennington, VT, location, is now corporate lean director. Steve Hockridge has been promoted from corporate lean director to general manager, global specialty batteries. John Hall has been promoted to plant manager of the Bennington, VT, plant. … In acquisitions news, ASSA Abloy has acquired Pemko Manufacturing, which is headquartered in Memphis TN. Pemko also has a manufacturing plant in Ventura, CA. Pemko’s plant manager is David McCullough, and Daniel Osuna is assistant plant manager. … On the training front, Enpro will be conducting two more waves of TCV black belt certification classes in the U.S. and Europe in 2008. Two additional certification classes for both green belt and business process kaizen will also be conducted in both regions. A new TCV master black belt class will also be conducted in 2008 to train a select few TCV black belts to be certified to serve as regional internal consultants throughout the Enpro organization. The first-wave class (U.S.) and the second wave (Europe) will defend their projects and be certified by the end of 2007. … John Cotton of Douglas Dynamics in Milwaukee, WI, was awarded the first ever TBM Lean Certification last fall. Greg Masciana of Textronix in Beaverton, OR, was the second person to be awarded Lean Certification. …

TBM is growing and has hired a number of new consultants and administrative staff, and has also undergone some structural changes. Jerome Davis is the new executive vice president and managing director of TBM’s Executive Coaching and High Performance Culture Practice. Herb Brown will join Jerome as global practice leader. Andy Andrews, Dave Avery, Rick Hartman, Neil Huff, John Jack Lyons, James Brad Morris, Ana Poplaski, Kenneth Greg Warrick, Robert Weiclaw, and Timothy Wright, Jr., are new U.S. consultants. Eddie Kemberly is a new consultant for the U.K. team, Mario Gonzalez is a new consultant on the Mexico team, Juergen Horak and Sascha Ludwig are new consultants for TBM Europe, and Susan Li and Karl Peng are new consultants for TBM China. Shipra Chopra is the new manager of administration and marketing in the India office. New accountants are Edgar Sanchez in the Mexico office and Pankaj Solomon in the India office. At the Durham, NC, headquarters, Beth McDowell has moved from accounts payable to a new position, Business Development Quoting Coordinator. Her accounts payable position has been filled by Barbara Piper. In the TBM Institute April Clark and Christina Solomon are new event coordinators, and Carla Miller is the new training development coordinator. TBM management has created a team dedicated to delivering lean value chain solutions to our clients. Team members are Bill Remy, team leader; Rodney Hammett, Don Pedersen, Doug Senecal, Harold Tessman, and Andy Andrews. PUBLISHER’S NOTE. LEAN COMMUNITY NEWS

A publication of TBM Consulting Group, Inc. 800.438.5535 www.tbmcg.com

LEANCOMMUNITYNEWS

Managing Times | Q1.08 www.tbmcg.com/news/newsletter.php

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CASESTUDY

Lean Value Chain: Demand Segmentation A Packaging Supplier Synchronizes Operations and Order Fulfillment to Customer Demand

When a multibillion dollar packaging

“When it came to implementing the pull system, the process changes were easy compared to the cultural changes. The biggest challenge was

CASE STUDY

changing the organization’s mindset.”

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manufacturer and distributor decided it wanted to be the one-stop source for packaging products in a highly competitive, cost-critical market, it realized that it would need to align 39 manufacturing and eight distribution facilities across the United States, Mexico, and Canada. The immediate challenge in one business segment: to reduce inventory levels and improve forecast accuracy. Starting the journey toward a lean value chain, a thorough analysis of demand patterns accelerates adoption of a demand-based replenishment system. Statistical forecasts incorporate promotion and point-of-sale data. SKU rationalization eliminates some slow-moving, highly volatile products. By using lean methodologies, the company was able to use a pull system to reduce inventory levels by $1 million for a single product line while simultaneously improving case-fill rates from 97.7 percent to 98.5 percent. Shipping orders direct from the factory further reduced inventory, related carrying costs, and transportation costs. Creating and following a standardized process improved forecast accuracy from around 55 percent to nearly 75 percent.

Moving Outside the Box When it comes to matching production with customer demand, the biggest headaches are often self-inflicted. To meet sales targets, marketing pushes end-ofquarter promotions, which trains customers to wait for discounts and stockpile product. High-volume order policies decrease order frequency and further contribute to demand volatility. Sales managers “tweak” or outright ignore statistically-based forecasts. The factory runs large batches to maximize equipment utilization, then it has to shut down production lines for weeks or even months when sales fail to materialize. The packaging supplier had all of these problems and then some. Promotions stimulated orders, creating the typical peaks and valleys in volume, but it was impossible to determine if these efforts were boosting overall sales. Smaller customers were forced to buy full-pallet quantities that would take months for them to sell. Manufacturing was forever playing catch-up because its production schedule was based on the sales forecast, a subjective and error-prone target in any business. In some cases the company received valuable point-of-sale data from customers, but nobody was even looking at it. Looking at the metrics, forecast accuracy hovered around 55 percent. Inventory levels ranged from 23 to 85 days of supply in a key business segment. But


despite having so much inventory, the case-fill rate was only 97.7 percent. On top of such poor performance, a series of uncoordinated improvement initiatives and the decrease in fill rates from previous attempts to reduce inventory, had made the workforce deeply skeptical that anything could actually be improved. To overcome such obstacles and get things moving in the right direction, the company engaged TBM Consulting Group, which pulled together a cross-department team who represented the value stream—the flow of both materials and information— for a single product family spanning multiple facilities. Fully supported by executive management, the team was comprised of people from the company’s forecasting and planning department, production and inventory control, sales and marketing, customer service, finance, and information technology. After observing existing processes to identify potential opportunities for improvement, the team brainstormed and came up with a number of possible solutions. They plotted those ideas on an “impact/difficulty” matrix. For each idea they estimated the potential impact (high, medium, or low) and the difficulty (high, medium, or low). From that exercise the team identified three key initiatives offering a high impact and a low-to-medium difficulty level that would deliver rapid improvement.

Pulling Everything Together Understanding true demand is the key starting point for creating a lean value chain. Demand volatility will influence service-level decisions and determine, for example, if a product can be produced using a pull system. Such a system relies on customer orders to trigger production and material replenishment. With acceptable service levels (the lead time required to make and ship the product to the customer), demand patterns could also indicate that a particular stock-keeping unit (SKU) should only be produced on a made-to-order basis. After performing a thorough demand analysis, the team determined that a higher percentage of products than previously thought could effectively be managed by a pull system. Almost 75 percent of products were a good candidate for pull. The remaining products consisted of highly volatile items driven by seasonality or erratic order patterns from smaller customers. Starting with a single product line in a single distribution facility, they began to use the existing capability of their inventory control system to send electronic replenishment (kanban) signals back to the factory. In addition to executive management support, the organization was able to implement changes quickly on the strength of a clear project plan, adequate

resources, and a consensus among managers about the process improvements being made. Still, the transition wasn’t without pain. Getting to the new stocking levels meant that manufacturing had to shut down several production lines for three weeks to bleed off the extra inventory, which created negative—albeit temporary and anticipated—accounting variances. To further smooth out demand, the company changed its policies to allow customers to order in less-than-pallet quantities. When it came to implementing the pull system, the process changes were easy compared to the cultural changes. The biggest challenge was changing the organization’s mindset—especially in marketing—about the amount of inventory needed to maintain acceptable customer service levels (fill rates). With production driven by actual signals from the customer, manufacturing managers also had to learn to think differently about the sales forecast. Going forward, it would be used to plan capacity and resources, but not for actual scheduling. In the end, even though there was less inventory in the supply chain, fill rates improved from around 97.7 percent to more than 98.5 percent. Not having to ramp resources up and down reduced labor costs by several hundred thousand dollars in a

Managing Times | Q1.08 www.tbmcg.com/news/newsletter.php

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CASESTUDY High-Variability SKUs

Low-Variability SKUs

Bumpy Ride: Even for this low variability product, the alignment of orders and shipments could be improved further by smoothing the large swings in the January-February and September-December timeframes.

single factory. The company anticipates that direct shipments to customers from the plant, rather than through a distribution center—a change enabled by the transition to pull—will save several hundred thousand dollars more in transportation costs. Strength in Numbers The second key initiative recommended by the team was to establish a standard forecasting process. Here they benefited from the example set by another area of the company, which used a more statistical method to predict customer demand that yielded much higher accuracy rates. In the business targeted for improvement, the account managers participated in the forecasting process. Each of them added their own spin to the numbers, which further reduced accuracy. In addition to implementing a statistically-based forecasting method, they began to factor point-of-sale data and upcoming trade promotions into their calculations. A designated “business owner” for the demand-planning process initiated a new monthly forecasting meeting. Sales and marketing managers began bringing their promotion schedules to that meeting to help other areas of the business plan capacity. The team developed an 18-month, rolling forecast with weekly projections for the coming three months, and monthly expectations

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Out of Sync: As illustrated by this month-to-month overlay, orders and shipments for this highly promoted product fail to align with the sales forecast, which is completely out of sync with production. Low production rates in January ramp up rapidly in February and March. The line is shut down completely in April and May when orders fail to materialize.

after that. As a result, forecasting accuracy improved from around 55 percent to upwards of 75 percent. On the distribution side, the organization had always struggled to allocate inventory between five regions throughout the United States. Each unplanned transfer from one region to another to satisfy local demand represented a forecasting failure. As part of the revamped forecasting process, the demand-planning team stopped making an overall projection that was then divvied up on a percentage basis by region. Instead, they started at the regional level, factoring in point-of-sale data for each product as well as anticipated promotions, and rolled that up to the national level. This produced a much more accurate demand forecast by region that will save a projected $500,000 in annual intersite transportation costs. The third recommendation of the assessment team focused on 225 highly volatile SKUs (out of 570 total). Dictated by large lot sizes, it made no sense to build and stock so much inventory for these products, which sat in storage for 75 days on average. The team determined that 45 of these low-volume, highly variable products could be eliminated or substituted with higher volume SKUs. Producing the remainder on a make-to-order basis could further improve material flow and smooth out production.

This supplier of foodservice packaging has begun to break free from its traditional supply chain structure. Customer demand drives replenishment, pulling product from the distribution centers and factories. Manufacturing is no longer churning out highly volatile product in large batches. Forecasts aren’t based exclusively on historical data and salespeople’s hunches. Inventories are on the decline, fewer items are out of stock, and less obsolete inventory is sitting around in the distribution centers. Developing a lean value chain means addressing four key links: demand management, order fulfillment, business planning and scheduling, and supply management. Now that the company has a more accurate sales forecast, the next step is sharing that information with its supply base. More collaborative relationships with suppliers will further reduce inventory levels and smooth the product flow throughout the value chain.


FUTURES

Steering Committees: They’re Vital to a Lean Culture By Mike Caldwell, TBM Senior Management Consultant

The Kaizen Promotion Officer is the perfect choice for heading up all kaizenrelated activities, from assessing the need for kaizens, to developing and preparing for them, and finally sustainment of results. But who can help get to the root cause of cultural issues that affect the success and sustainment of a company’s entire lean journey? We must first understand that the leadership staff does not always reflect the concerns or views of the total workforce. Whether or not a business is a union environment, kaizen works best when the team is a cross-functional group with cross-funional relationships, from several areas, reporting levels, and shifts within the organization. One good way to address this issue is to establish a steering committee. In addition to ensuring cross-functionality and representation for all workers, a steering committee helps reinforce abnormality management and sustainment of results. The following outline provides the basics of steering committees.

What is a steering committee? A steering committee is a collection of individuals from upper management and hourly ranks that is responsible for setting a strategic direction aimed at the successful implementation of lean manufacturing. The steering committee also enables personnel to follow the goals and expectations set forth by the committee. Who are the steering committee members? A steering committee should consist of an equal number of management and hourly personnel. The management team should consist of the plant manager and all area/department managers. The hourly team should include representation from all areas of the plant. If it is a union facility, the hourly personnel should consist of the plant chairman and the rest of the bargaining committee. The members of the KPO should attend meetings as a resource only, not as voting members of the plant steering committee. What are the roles and responsibilities of the steering committee? The steering committee should establish the vision of lean implementation for the facility and determine the best method for rolling out that vision throughout the plant. They should also be responsible for policy deployment, which includes establishing and providing needed tools and funding; setting plant objectives and strategies and providing guidance to the plant; weighing issues and making final decisions regarding implementation; being available as a resource when needed; and communicating activities to affected personnel. If it is a union facility, they should assure adherence to the local contract. The steering committee should approve an implementation timeline and follow up by setting interim goals and gauging progress of actual results versus set targets. When should the steering committee meet? The steering committee should meet at a predetermined day and time each week and the meeting should last no more than one hour. As the champion of lean implementation, the plant manager should conduct the meeting. If the plant manager isn’t available, a designated replacement should conduct the meeting.

Mike Caldwell

What information is communicated by the steering committee? The steering committee should approve all communications generated by the Kaizen Promotion Office. The KPO should communicate the plant vision, goals, and objectives, as well as the progress of lean implementation, to everyone through newsletters, bulletin board postings, or internal video programming. Communications should also include policy changes, best practices, lessons learned, and resolutions to implementation concerns. Lean transformation is a highly dynamic activity, one that is very difficult given the traditional levels of involvement of the leadership group alone. An effective steering committee can make sure that everyone at the plant understands why lean is being implemented and how it can make both the business and individual’s jobs better. It can make certain that everyone is pulling in the same direction and that everyone in the plant understands they are all part of one team. It can be the deciding factor in the successful start and sustainment of your lean journey. If you don’t already have a steering committee in place, consider establishing one—the success and longevity of your lean transformation may depend on it.

FUTURES

A

s you might guess, most organizations, whether they would like to admit it or not, have trouble when it comes to setting organizational direction or guidelines that are fair and equal to all employees. Consider the average employee handbook. Generally the “do nots” are what is highlighted, and these “do nots” are usually the result of past accidents or incidents that were caused by that proverbial 5 percent of the workforce that causes 95 percent of the organization’s grievances. This latter group is what we call CAVE people (citizens against virtually everything). When setting policy for an organization, if we are not careful we can fall into this trap of legislating based on what— or who, in some cases—hurts me the most.

Q1.08 www.tbmcg.com/news/newsletter.php

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ACCELERATEDLEARNING

eLearning: An Essential Piece of the Learning Puzzle By Joe Panebianco, TBM Senior Trainer and Design Specialist

W

ACCELERATED LEARNING

Joe Panebianco

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e’ve all heard the term eLearning. It seems to be one of the “hot topics” or new buzz words in today’s landscape of corporate training programs. In 2006, 53 percent of all corporate training involved some form of eLearning (Bersin Associates, 2007). Even universities—stalwarts of traditional classroom learning—have jumped on the bandwagon, with 96 percent of universities with more than 15,000 students offering some type of online class (http://www.sloanc.org/publications/survey/survey06.asp, The Sloan Consortium, 2007). Beyond a doubt, eLearning is a concept embraced by students and instructors alike in both corporate and academic settings. But what is it exactly? And—even more importantly—how will it affect you? ELearning, simply put, is instruction delivered via the computer. It includes texts, spoken words, graphics, animation, video, examples, interactive exercises, and assessments to convey course material just as traditional classroom instruction does. However, in the case of eLearning, all of these learning aids are delivered via a computer connected to the Internet. That is the defining feature of eLearning—the computer-based technology that serves as the delivery medium.

In the corporate world, most training programs fall into one of two categories— those designed to inform employees about information relevant to their jobs or those designed to teach employees how to perform a task needed on the job. In fact, most training programs share both objectives. ELearning is a medium well-suited for delivering training with these objectives. Many companies have shifted to eLearning to deliver their new hire orientations—to inform new employees about the company’s mission, values, history, and so on. Compliance training is another type of instruction that is often done via eLearning. Now let’s examine three common forms of eLearning: synchronous training, asynchronous training, and blended. Synchronous Although you may not recognize the term synchronous learning, most of us are familiar with the concept because we have all been in a classroom as student or instructor. Synchronous learning occurs when a learner and instructor are in the same place at the same time. Lecture is an example of synchronous learning. Synchronous Web-based learning uses the Internet so that we experience classroom interaction in a virtual environment. Instruction is distributed to many locations but occurs through real-time interaction between students and their instructor. An example of this type of learning is a webcast, where employees must log onto a class at a specified time in order to interact with the instructor via their computer.


Asynchronous Asynchronous learning is a teaching method where the delivery of training materials occurs at different times for all of the students involved. The asynchronous format has existed for quite some time, but the use of computers and the Internet has greatly increased the popularity of this method as well as the number of educational topics that are available asynchronously. It is widely accepted that this approach can enable learners to increase knowledge and skills through self-paced and self-directed courses completed when the learner is prepared and motivated to learn. For example, correspondence courses are a traditional form of asynchronous learning. Blended Blended learning is the combination of multiple approaches to learning. Blended learning can be accomplished through the blending of virtual and physical resources. A typical example of this would be a combination of technology-based materials and face-to-face sessions used together to deliver instruction. The new TBM Lean Certification course is our first foray into blended learning. In the program, students participate in the synchronous element through their four weeks of traditional classroom learning. They work asynchronously on their projects during the certification process. Furthermore, students are exposed to an online component where they demonstrate and quantify their skills retention by taking tests through a Learning Management System (LMS). This blended approach ensures that students use the most effective delivery method for the material being taught or tested.

Identifying Effective eLearning Just as you can have a bad classroom experience, you can have a bad eLearning experience. With the number of eLearning offerings available, it may be difficult to determine what good eLearning looks like. Here are five elements to look for when evaluating eLearning programs: • A user-friendly interface that is intuitive and does not distract from the learning. • All classes should have clearly defined learning objectives. Evaluate the learning objectives to ensure they meet your instructional needs. • Multiple media (i.e., sound, video, animation, and text.) to stimulate as many senses as possible during the learning experience. • Interactive exercises that clearly reinforce the learning (these are critical components of an effective eLearning program). • A post-assessment that measures the effectiveness of the instruction and ensures that all learning objectives were achieved. The great advantage of eLearning is that once an effective eLearning course is developed, the computer and Internet can make it widely available without the need for travel, time out of the office, or committing to a specific date and time. Through eLearning, employees around the world can have access to top-notch training with more convenience and flexibility than ever before. Employers can also realize economies of scale—training their workforces on more topics and at a faster pace than ever before. ELearning is an effective way to build awareness and understanding across a broad base of employees. Most important, it can serve as a vehicle for rapid change within an organization.

TBM recently launched new Essential Lean Learning—the first comprehensive online awareness training for lean. For a demo, please go to http://www.tbmcg.com/learnonline

Q1.08 www.tbmcg.com/news/newsletter.php

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LEANCHAMPIONS

Lean Champions: Paul Adelberg, Hayward Pool Products Anand Sharma, President and CEO, TBM Consulting Group

When addressing an audience of lean

“Paul became the company’s ‘Great Communicator.’ He was

or soon-to-be lean practitioners, a recurring theme is lean leadership. There’s a reason why this topic comes up often, and it’s because a lean journey can’t be successful if a company doesn’t have a committed leadership team with lean champions in place to help make it happen.

the voice of reason for lean at all levels of the company.”

LEAN CHAMPIONS

Paul Adelberg is a lean champion in every sense of the word. Paul is now mostly retired from Hayward Pool Products, but before going into semiretirement, he spent the past seven years championing lean at Hayward. What does it take to be a lean champion? Lean leaders must have passion for what they do and must be willing to share that passion with everyone else in the company, and even out into the value chain and to the customers as well. Paul did all that and more: he also championed lean to other companies just starting on their journeys. When Hayward’s president first heard about lean in 1999, he took the idea to Paul, then vice president of manufacturing, and

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asked him to look into it and see if it was something Hayward should consider doing. It didn’t take Paul long to realize that lean could benefit the company greatly, and he reported so to upper management, which subsequently asked TBM to help lead the transformation from the outside. It then became Paul’s responsibility to help lead the transformation from within. The company designated several people, including Paul, to attend a public kaizen event at a Maytag plant in Cleveland, Tennessee. That event, along with a visit to Wiremold Company, helped solidify Paul’s belief that lean was an important—and logical—journey for the company to take. He observed lean “in action,” saw the results other companies had gained, and realized that Hayward could reap those same benefits. At the behest of upper management his sole focus was set on lean leadership for Hayward. Paul had two advantages that made him the logical choice to become Hayward’s lean champion: He had been with the company a long time and was well-respected among management and associates alike, and he had the ear of upper management and the owners of the company. In short, he had the support and the resources he needed to be successful in the role, and he took full advantage of that support to help Hayward start a successful transformation.


Introducing TBM’s Cultural Transformation Practice Leaders

Paul became the company’s “Great Communicator.” He was voice of reason for lean at all levels of the company. He promoted Hayward’s lean successes and project results, not only to upper management, but throughout the company, as well as to outside companies interested in starting their own lean journeys. Paul’s efforts kept the benefits of lean in the bright light, where they could grow and influence Hayward’s entire culture. He made sure that everyone in the company knew what a lean transformation meant and how the company was planning to get there. He was, in short, the consummate lean cheerleader. One thing that stands out the most to me is Paul’s willingness to help anyone at any time—another hallmark of a true champion. He gladly attended meetings of lean practitioners so he could share his knowledge and the story of Hayward’s journey because he knew doing so could help others. He made himself available to those just starting out because he knew that sharing the vision is often the most important first step. He made himself available to TBM as a champion of the work we do. Upper management at Hayward would rightfully attribute the company’s business success in recent years to its lean transformation, and would attribute much of the success of the company’s lean cultural transformation to Paul’s efforts as a lean champion. AAlthough Paul is no longer at Hayward full time, one might still expect to see him around from time to time, offering his help where it’s needed and championing lean to the rest of the manufacturing world. It’s what lean champions do.

J

erome L. Davis, executive coach and former president of Jerome L. Davis Associates, has joined TBM as executive vice president and managing director of our Executive Coaching and High Performance Culture Practice. Davis will head the practice and build the company’s global staffing, retention, development, and succession planning. Herb Brown, TBM consultant and client manager since 2004 and former senior executive with 20 years of LeanSigma® experience, will join Jerome as global practice leader. In their new roles, Davis and Brown will help clients accelerate business results by working with them to enhance personal and professional leadership skills needed in a complex global marketplace. Under Davis’ leadership, TBM will provide clients with tools and techniques to accelerate their lean cultural transformation. New services will include: • Strategic executive coaching • Global staffing and retention strategies • Succession planning • Internal/external customer/client feedback • Customized leadership workshops • Assessments and tools to improve individual performance issues • Career planning Davis brings to TBM more than 28 years of experience developing high-potential and seasoned executives in Fortune 1000 companies. Davis founded Jerome L. Davis Associates LLC in 2006, a business focused on executive coaching. Davis has previously held executive positions at Electronic Data Systems, Maytag Appliances, Maytag Commercial Solutions Division, Frito-Lay, and Procter & Gamble. His knowledge of domestic and international distribution channels includes retail sales, direct sales, wholesale, marketing, advertising and manufacturing. He currently serves on the board of two publicly traded corporations, Apogee Enterprises, INC (NASDQ; APOG) and Gamestop, Inc. (NYSE; GME). Prior to joining TBM, Herb Brown led LeanSigma work as president and CEO of Blue Giant Equipment Corporation and the Alexander Doll Company. As vice president and general manager of Johnson & Johnson Medical, Inc., Vascular Access Products and

Jerome Davis

Herb Brown

vice president of Operations for Danaher Corporation, Brown led some of the first lean transformations in the U.S. and expanded the use of lean tools into product development and throughout the value chain. His work at Johnson & Johnson earned the company a Shingo Prize in 1994. Brown’s experience with lean began in 1985, as vice president and general manager for Quincy Compressor, and his experience with Six Sigma dates back to 1974 while a quality engineer with Black & Decker. Herb worked closely with Shingijutsu and trained in global marketing strategy at the Thesius Institute in France. He has been a guest lecturer at MIT and Columbia University. Brown earned an MBA from Quincy University and a B.S. in Manufacturing Engineering from the U.S. Merchant Marine Academy. “A sound and robust cultural transformation expertise is critical to the success and growth of our client companies,” says Anand Sharma, TBM president and CEO. Together Davis and Brown add the necessary breadth and depth to that practice to enable us to meet the needs of our clients. Q1.08 www.tbmcg.com/news/newsletter.php

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TECHTALK

The Management Walk—Key to Sustained Performance Ken Van Winkle, TBM Director of U.S. Consulting and Team Leader

Management visibility and engagement,

TECH TALK

Ken Van Winkle

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though sometimes overlooked, is probably the most critical element of a site’s lean journey. The imperative is that management must not just tell employees what they should be doing on the journey toward becoming lean, but they need to be actively engaged in the process as well. “Seeing is believing”—the best motivator for any associate is to see members of management actively engaged in the process of the lean journey. This is especially true when it comes to maintaining momentum and sustaining gains. If management is committed to change, then the rest of the workforce will more easily follow. A great starting point for being actively engaged is what is often called the “weekly management walk,” or perhaps it could be the daily management walk. Either way, this is an opportunity for the management team to walk the talk—it can help them to both understand what is going on in key areas where kaizen activity has started and also help to resolve problems. Just getting out on the shop floor and reviewing the activities there on a regular basis can be a good learning experience for the management team as well as a morale booster for the plant associates. Management walks are an integral part of any management for daily improvement (MDI) plan. MDI plans are the means by which an organization ensures that lean activities don’t become a “yeah, we already did that” phenomenon, but instead remain the focus of an ongoing transformation and cultural change whose ultimate goal is to allow the organization to grow profitably. After all, a lean transformation is about continuous improvement, but since it’s human nature to become a bit complacent once some success has been achieved, it’s up to management to actively fight that complacency and foster a true lean cultural transformation.

The management walk is typically done at a pre-set time each day or week. The site manager (plant manager) leads the walk and is accompanied by key members of the management team. The site manager leading the weekly (or daily) management walk sends the appropriate message to all employees as to who is the champion of the LeanSigma® transformation. The walk itself has several goals: • To insure support by the management team of kaizen sustainment. • To understand the safety, quality, cost, delivery (SQCD)/5S performance trends. • To help areas or departments celebrate their successes. • To ensure that the management team is up-to-date on any recurring problems in a particular department and lends support toward resolving those problems. • To conduct an SQCD board audit in the interest of continuous improvement.

The management walk is not intended to be a time to resolve issues (although it is certainly a time for management to be made aware of issues). It is primarily a time for one-way communication from the SQCD board owner of a particular department or area to the management team. All in attendance should be attentive and show respect to the supervisor/team leader who runs the department. The management walk should be brief, approximately five minutes per board visited. The idea is not to spend a lot of time dissecting the metrics presented but rather to obtain an overview of the situation in a particular area and be made aware of any issues that have arisen with meeting those metrics. During the walk, one of the management team members should


conduct an audit of the SQCD board using the “SQCD Board Audit Form.” The form should be left at the board with the expectation that issues identified will be addressed during the coming week. Regular, planned management walks can produce a number of benefits: • They promote managing by performance. • They ensure that the management team clearly understands the performance trends at the key departments where boards are being used. • They ensure that the supervisor/team leader of the area is actively engaged in abnormality management, that is, in solving problems that are reflected on the SQCD board (e.g., missing per formance targets). • They show the management team’s support of the LeanSigma transformation to all on the shop floor or in the office area.

Don’t fall into the trap of thinking that you are too busy to take time out of your daily or weekly schedule for the management walk. The success of any organization’s lean journey depends on commitment and hands-on leadership from the management team. This simple and brief activity may well be the key to keeping your lean transformation fresh, active, and energized.

For a management walk to be successful in helping to sustain a plant’s lean journey, several logistical items must be considered: • Clearly define the day and time of the week for the management walk. • Clearly define who is expected to attend. • Clearly define which SQCD board(s) will be visited during the walk. • Assign a person on the management team to conduct the SQCD board audit. • Clearly define the person that will speak to the SQCD board metrics. • Have a pre-set agenda for the person discussing the SQCD board metrics; this agenda should include the following topics: • Key performance trends • Metrics indicating missed targets during the past week • Root cause identification for key targets missed • Countermeasure(s) that have been identified or implemented to resolve the problems

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TECHTALK

Best Practices in the Workplace: Managing Sustainment of Kaizen Results Cathy Elias, Staff Engineer, LeanSigma, Engenio Storage Group, LSI Corporation

H

TECH TALK

Cathy Elias

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ow do you ensure that the gains made during a kaizen event stand up to the behavior extinguishing winds of time? At the Engenio Storage Group division of LSI (ESG/LSI), the answer to that question proved more problematic than the scenarios that led to the kaizen events themselves. And finding a way to ensure sustainment of improvements from business process kaizens was far more challenging than for shop floor kaizens. Shop floor processes are far more visual than business processes. In a shop floor kaizen, the layout and workstations are typically physically relocated, which involves special resources to move heavy equipment and perform electrical and mechanical reconfigurations, changes that cannot easily be undone by the operators and, by that reason, reinforce the behavior that sustains the newly implemented flow. As Terry Gowin, lead of the KPO states, “If you change the operator’s physical world, you change their behavior.” Visual management techniques flourish in a shop floor scenario: hour-by-hour charts, jidoka applications— including the very visible andon lights, and performance charting with abnormality response plans, including the kaizen newspaper. Even the casual observer can discern when a production line is not flowing! By contrast, business processes are typically not visual. They often involve a computer workflow which, unlike a manufacturing process, cannot be seen and have its performance instantaneously assessed by the casual passer-by. In addition, during a kaizen event no dramatic physical change takes place, which makes ‘turning back’ relatively easy, unlike with a shop floor kaizen. The KPO at ESG/LSI is using a tool and approach, developed in-house by the Director of Quality Management Systems (QMS) Dave Cunningham, which has proved to be instrumental in ensuring that kaizen gains are sustained. As Dave indicates, “This is all about culture change, process speed, and execution excellence. The sustainment audits bring focus to ownership, metrics and continual improvement. It keeps us focused and engaged with the solutions

implemented by the kaizen teams.” The tool consists of an audit approach and a balanced scorecard with a scoring methodology. Audit Approach Kaizen sustainment audits and the corresponding lead auditor are maintained on a roadmap by a member of the KPO. Kaizen auditors currently rotate from the pool of KPO members. However, if the need should arise, other sources include internal ISO auditors and employees who have volunteered to be on future kaizen teams. The actual audit is scheduled by the lead auditor with the process owner and targeted to take up to one hour. A total of five audits should be performed on a kaizen area— basically once a quarter, with the first audit occurring within 30 days of the kaizen event, followed by the 60-, 120-, 240-, and 360-day milestones. Audit sheets are stored on the KPO website and are accessible to everyone in the company. Balanced Scorecard & Scoring Methodology The scorecard consists of five focus areas called audit objectives: 1. Process owner 2. Metrics available and current 3. Metrics monitored 4. Roles and responsibilities communicated and understood 5. Process compliance and improvement. Each audit objective has associated measures, (descriptive) targets, and supporting initiatives. Let’s take a look at the individual audit objectives.


Process Owner The active involvement of the process owner post-kaizen is the key to sustainment. Make sure the identity of the process owner is known before exiting a kaizen event. The process owner must be aware of what that means: monitor process performance, initiate corrective action, and perpetuate continual improvement. We also want to be sure that the process users know the identity of the owner. The auditor will interview the process owner and have the owner explain the area affected by the kaizen, how they are managing the area, and the recent improvements and problem areas. Using a subjective analysis of the process owner's answers, the auditor gives credit for the areas listed on the scorecard. A range of point credit can be given, depending on the degree of the process owner’s support, management, and understanding. Audit Objective Process Owner Measures Process owner is actively aware of their ownership, ongoing area performance, and metrics monitoring. Targets Process owner is known and actively engaged with performance and metrics monitoring. Supporting Initiatives +1 - 3 = Process owner understood by area employees +1 - 3 = Process owner ensures the process is maintained +1 - 4 = Process owner understands the process and current issues/ improvements

The actual scoring is embedded in the “Supporting Initiatives.” For “Process Owner” and each of the other audit objectives the maximum score is 10 points. Anywhere from 1 to 4 points can be subjectively given for the degree to which the identity of the process owner is understood by area employees, the process owner ensures the process is maintained and understands the process and current issues/improvements.

Audit Objective Metrics are up-to-date and available Measures Confirm where metrics are stored; review the data to see if the metrics are up to date. Verify the location matches the process documentation. Targets Metrics should be current. They must be readily available (Web, shared drive, etc.), and the process must tell where they are stored. Supporting Initiatives Metrics current = 6 (minus 1 for each time period off) Ex: 2 weeks out of date for a weekly metric would be a 4 Metrics Readily Available = 4 (0 = no, 2 = avail., 4 = readily avail.)

Metrics Are Being Monitored While metrics must be monitored, they must also be used to manage the process. The auditor will evaluate the monitoring of the metrics by the process owner and subjectively give them credit for this. If the process owner can demonstrate action taken to improve the metrics, they are given additional points.

Metrics Are Up-to-Date and Available If process metrics are to be used to monitor, control, and improve a process, they must be current. In addition, they must have a designated location that is also stated in the process documentation. Ideally, they will be highly available and reside on a website or shared drive accessible by a number of users and not sequestered on the hard drive of one person’s computer. The auditor will review the kaizen-area metrics with the process owner. One point is subtracted for each time-unit measure by which their metrics are delinquent (i.e., a week, a month, etc.). The auditor evaluates the availability of the metrics and subjectively gives them credit based on degree of availability. Examples of high availability would be a posting on a website, public bulletin board, and so on. Examples of low availability would be no metrics at all, metrics stored on a personal computer hard drive, and so on.

Audit Objective Metrics are being monitored Measures Evidence must be shown that the supporting metrics are monitored and managed against. Targets Metrics are monitored on a regular basis: weekly, monthly, or quarterly. Evidence must be shown concerning the actions taken from the metrics. Supporting Initiatives 0 = Metrics are not monitored 1 - 2 = Metrics are rarely montitored 3 - 5 = Metrics are monitored but not regularly 6 - 8 = Metrics are monitored regularly +2 = Evidence of action taken to improve metrics

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TECHTALK

Roles and Responsibilities Are Communicated and Understood All participants in the process should be able to demonstrate their understanding of the when, where, how, and why of what they do. The auditor may want to talk to people working within the process and confirm their understanding. The process owner should be able to convey the overall roles and responsibilities to the auditor and is given subjective points for the demonstration of understanding. The auditor should also check for new-hire training on the process related to the kaizen and give them additional points if incorporation can be confirmed. Audit Objective Roles and responsibilities are communicated and understood Measures Locate the roles and responsibilities in the process. Spot check individuals and ask for their responsibilities. Include new hires. Targets All employees understand their roles and responsibilities. New hires are trained on their roles and responsibilities. Supporting Initiatives 0 = R&R not understood. 1 - 3 = Small degree of R&R understood 4 - 6 = R&R generally understood 7 - 8 = R&R clearly understood +2 = New hire training covers updated R&R

Process Compliance and Improvement As the business changes or improvements are made, the process may need to be updated by the process owner. This includes training for the improved process. The auditor will evaluate that the process is actively in place and any changes are being documented and the users are trained. Subjective points will be applied, with additional points given if the auditor finds evidence that the process is being improved upon. Audit Objective Process compliance and improvement Measures Review the kaizen report and confirm that the process changes put in place are being followed by walking through the current process. Targets Up-to-date processes should be in place. Any significant updates or improvements should be noted in the process documents. Supporting Initiatives 0 = No utilization of the process 3 - 5 = Limited degrees of the process utilized 6 - 8 = Process is being followed 9 - 10 = Process continuous improvement is evident

Audit Wrap-Up Typically a paper copy of the scorecard is used by the auditor during the audit. The scorecard is an Excel file with embedded formulas that average the scores for each audit objective. The average falls within ranges that translate into letter grades as follows: A = 41–50 D = 11–20

C = 21–30

The auditor enters the individual scores into the audit worksheet and walks through the outcome with the process owner. The “Audit Notes” column is valuable for clarifying observations and making recommendations. If corrective actions (CA) appear warranted, they will be created and placed in the CA system. At ESG/LSI, the overall grades are reviewed at the executive-staff level. The scorecards themselves are available as back-up should additional details be requested.

TECH TALK

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B = 31–40 F = 00–10

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Results The “Kaizen Event Balanced Scorecard” has been in use for several months at ESG and 100 percent of the events have been audited. Many audits were started at dates well beyond the 30-, 60-, and 120-day milestones as the events being audited had occurred before the creation of the sustainment audit. But, probably more so than for any more recent kaizen events, these older projects needed the assessment, and in some cases that assessment indicated a need to get back on track. The scorecard has been well received by process owners as well as the executive management team. As Phil Bullinger, executive vice president of ESG/LSI, notes, “Sustainment is what it’s all about. If we don’t sustain the changes, we are passing up on the real improvement opportunity offered by kaizens.” ESG/LSI is pleased to share this tool with other Lean Sigma practitioners and welcomes any comments or questions. Cathy Elias can be reached at Cathy.Elias@lsi.com.


BOOKSTOREAD

Don’t Miss Creating a Lean Culture: Tools to Sustain Lean Conversions By Mike Serena, Ed.D., Managing Director, TBM LeanSigma Institute ®

1. Leader standard work: daily checklists and expectations for line leaders, supervisors, and value-stream managers that highlight the importance of and focus on the process rather than product output 2. Visual controls: tools that reflect actual vs. target performance and what must be done during periods of discrepancy 3. Daily accountability process: those meetings at each level of the organization that focus on performance and the follow-up steps that are expected to be completed as assigned 4. Discipline: ensuring adherence to the established process through cross auditing and aligning rewards with consistent performance

Mike Serena

The book is just shy of 175 pages and is a very quick read. It contains a great deal of case studies, photo examples, and anecdotes. Highly recommended reading are the chapters discussing the four elements of the management process, establishing standard work for support groups, details of establishing a daily Gemba walk, effective problem solving, expecting rapid improvement, and involving people and suggestions as the cornerstone for continuous improvement. As you finish the book, another nice surprise is what you will discover in the appendix. It contains not only a “Lean Management Assessment” that quantifiably evaluates an organization in eight areas and charts the results in a “spider graph” diagnostic, but also an 11-page glossary of lean terms and principles. If you are interested in acquiring some concrete explanations and examples as to how you can learn more about making a “culture change impact” on your organization, get hold of a copy of Creating a Lean Culture, and you will find yourself highlighting and dog-earring many of the pages for future reference. Have you read any interesting or thought-provoking books that you might want to recommend? Don’t forget to email them to me along with a brief review and I will include them in this column. Email address: mserena@tbmcg.com

BOOKS TO READ

F

or this edition of “Books to Read & Recommend,” I thought I would review a book that has been around since 2005, yet has proven to be one of the fundamental lean texts in my personal library, especially as it deals specifically with culture and how it must be developed if we are to sustain a lean transformation. Creating a Lean Culture: Tools to Sustain Lean Conversions by David Mann (Productivity Press) does a great job of not only detailing the principal elements of lean management but also how standard work and accountability processes can be established and monitored for all levels of the organization. Mann is an organizational psychologist who had been involved with more than 30 brownfield sites, lean conversion projects at Steelcase. From his experience, he has surmised that the key to sustaining lean conversion is creating a day-to-day management approach focusing on continuous improvement. Anyone associated with lean is aware of the paramount importance of establishing operator standard work for 100 percent of the activities to be performed during the production process. This is done to ensure that work is completed to customer expectations, will be as efficient as possible, and that the quality of the product will be ensured. Yet, it is surprising to learn that very few organizations clearly establish a lean management process that defines the roles and expected behavior of key management and support staff during the their lean journey. A recurring issue surrounding the successful implementation and sustainment of moving from a conventional “batch-andqueue” environment is the alarming failure to “sustain the gains” that approaches almost 50 percent! Mann is specific in detailing the elements and key characteristics of an effective lean management process. He lists the four elements as establishing the following:

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FIELDNOTES

Spring Mill Energy Kaizen—Big Savings through Use Reduction

A

FIELD NOTE

thermal energy kaizen was conducted to reduce the energy cost for the mill. The primary focus was steam and natural gas usage on the paper machines, natural gas usage in the lime kiln, and water load on the vapor compression evaporator (VCE) in utilities. Energy costs make up nearly 10 percent of the cost of products produced at our mill. Reducing our usage can help offset the rising costs of electricity, natural gas, coal, and fuel oil. For this event historical information was analyzed by machine and grade of paper to figure out “normal” steam and natural gas flows and set upper limits that would be considered “abnormal.” This information was then added to the paper machine reel reports and color coded green for normal and yellow for abnormal. Troubleshooting guides were created and linked to the same reel report to help guide operators to the likely reasons for energy use to be abnormal. Quickly responding to abnormally high steam and natural gas usage on the machines will save more than $100,000 per year.

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Examples of the energy costs encountered at the mill are as follows: • Every 1,000 pounds per hour of steam saved is worth $35,000 per year. • Every 1,000 cubic feet per hour of natural gas saved is worth $75,000 per year. • The cost to evaporate one gallon per minute of water from the spill collection system is $6,400 per year. • The cost to evaporate one gallon per minute of water from coating in the third dryer section is $19,200 per year. • The cost to evaporate one gallon per minute of water from coating in the paper machine ovens is $75,000 per year. The lime kiln natural gas usage was also analyzed that week. The lime kiln has demonstrated an 18-percent reduction in natural gas usage over the past two years, saving nearly $250,000 per year. “Normal” usage and “abnormal” usage was also established for the lime kiln, and visual alarms were created to alert the kiln tender to both abnormally high and abnormally low natural gas usage to ensure production of good quality lime and not waste energy. Potential savings here are less than $2,000 per year due to the improvements achieved since 2005. The digester basement was also inspected to identify opportunities to reduce water flows to spill collection and thereby reduce the steam required to operate the VCE. Repairing a couple of small water leaks added up to several gallons per minute and another $30,000+ in annual energy savings. Numerous (32) safety conditions were identified, 21 were corrected, and plans were made to correct the remaining 11 items. — J. B. Williams, Appleton Papers, Appleton, WI


CONSIDERTHIS!

Lean Leaders

LeanSigma

E x c h a n g e

E x c h a n g e

April 15-17, 2008 WIKA Instrument Corporation Atlanta, GA Lean Leadership Conference

September 23-25, 2008 Vermeer Manufacturing Des Moines, IA Lean User Conference

Lean Leaders Exchange A lean leadership conference for seniorlevel practitioners responsible for enabling lean success through leadership and culture.

LeanSigma®/Kaizen Promotion Office Exchange A lean user conference for mid-level managers and leaders managing the daily implementation of lean inside their organizations. ___________________________________ Who Should Attend: Managers and leaders responsible for LeanSigma implementation inside their organizations. Attendees should be familiar with lean and looking to learn the latest LeanSigma tools and techniques.

®

LLX KPO

___________________________________ Keynote address from Dr. Jeffrey K. Liker, international best-selling author of The Toyota Way.

___________________________________ What to Expect: LeanSigma/Kaizen Promotion Office Exchange provides an intimate and informative forum for LeanSigma users to network and learn. The three days will include best-in-class case study presentations, a deep-dive on LeanSigma tools and methodologies, interactive roundtable workshops, networking opportunities, and a plant tour at Vermeer where you can observe lean tools in use and understand their role in supporting Vermeer’s lean culture. ___________________________________ Keynote address from Bodine Balasco, voted one of the Top 21 Speakers for the 21st Century by Successful Meetings magazine.

CONSIDER THIS!

___________________________________ Who Should Attend: Senior-level continuous improvement managers and champions who have been on a LeanSigma® journey for three or more years and are looking to build leadership skills and drive cultural transformation. ___________________________________ What to Expect: Lean Leaders Exchange provides seasoned lean practitioners an opportunity to take their lean initiative to the next level. The three days will include in-depth breakout sessions, interactive roundtable workshops, networking opportunities, and a plant tour of WIKA’s highly-developed lean enterprise.

Q1.08 www.tbmcg.com/news/newsletter.php

17


MANAGING

TIMES

TBM LeanSigma® Institute 2008 Event and Workshop Schedule

Australia 403A 86 Bay Street Port Melbourne, Victoria 3207 Australia 03 9681 7385 Brazil Avenida Moema 170, cj 45 Sao Paulo -- SP Brasil 04077-020 55.11.5051.7490 China Room 3, 3/F, POS PLAZA 1600 Century Avenue Pudong Shanghai, 200122 P.R. China 86.21.6888.6671

Business Process Kaizen Instructor Training Aug 26-29

Durham, NC

Design for LeanSigma® New Products and Processes Mar 3-7 Jul 7-11

Durham, NC Durham, NC

CEO Boot Camp May 5-7

TBD

May 5-9 Sept 8-12 Nov 3-7 Nov 24-28

Dec 10-12

TBD

ConMed - Utica, NY Gai-Tronics Limited - Staffordshire, UK TBD WIKA - Klingenberg, Germany

Kaizen Promotion Office Workshop Apr 1-4 Apr 22-25 May 13-16 Jul 22-25 Aug 25-29

Durham, NC Shenzhen, China Monterrey, Mexico Durham, NC Gurgaon, India

Oct 14-17 Oct 14-17 Oct 14-17 Nov 18-21

Durham, NC Monterrey, Mexico São Paulo, Brazil Shanghai, China

TBM Lean Certification Track Week Week Week Week Track Week Week Week Week

2 1: 2: 3: 4: 3 1: 2: 3: 4:

Mar 4-7 Apr 8-11 May 6-9 Jun 9-13

Durham, NC Durham, NC Durham, NC Ceco Door, Milan, TN

Apr 29-May 2 Jun 3-6 July 8-11 Aug 4-8

Durham, NC Durham, NC Durham, NC Hayward, Clemmons, NC

TBM Lean Leaders Exchange Apr 15-17

WIKA Instrument Corporation, Atlanta, GA

Lean Management Accounting Mar 13-14 Mar 18-19 Jun 17-18

Mexico Calzada San Pedro #250 Nte. Edificio HQ Col. Miravalle CP 64660 Monterrey, NL 52.81.50.00.91.36

May 20 Aug 28 Oct 28-30

Monterrey, Mexico Durham, NC Durham, NC

Sept 9-10 Dec 2-3

LeanSigma® for Process Industries Jun 10-11

São Paulo, Brazil

LeanSigma Vision Tour

Sept 17-18

Durham, NC Durham, NC

Gurgaon, India

®

Apr 29-May 1

Sealy, Conyers, GA WIKA, Lawrenceville, GA Hubbell, Aiken, SC LaFonte, São Paulo, Brazil São Paulo, Brazil TBD

LeanSigma®/Kaizen Promotion Office Exchange Sept 23-25

Vermeer Manufacturing - Des Moines, IA

Managing for Daily Improvement Jun 2-6 Jun 11-13

Kenyon, MN Monterrey, Mexico

Quest for The Perfect Engine™

United Kingdom 3 Gleneagles House Vernon Gate DERBY DE1 1UP United Kingdom 44.1332.367378

Durham, NC

Kaizen Breakthrough Experience

India “Technopolis” Sector-54 DLF Golf Course Road Gurgaon, India 122 002 91.124.437.5995

Switzerland 29, route de Pré-Bois 1215 Geneva 15 Switzerland 41.22.710.77.70

Dec 8-12

Mar 6-7 Mar 26-27 Apr 1-2 Apr 9-10 Apr 9-10 Jun 11-12 Jun 17-18 Jul 9-10 Aug 13-14

Pune, India São Paulo, Brazil Berlin, Germany Derby, UK Shanghai, China Barcelona, Spain Boston, MA Monterrey, Mexico Hong Kong, China

Aug 4-8 Sept 15-19

Shanghai, China Utica, NY

Aug 20-21 Sept 3-4 Sept 30-Oct 1 Sept 30-Oct 1 Oct 30-31 Nov 5-6 Nov 5-6 Nov 10-11 Nov 11-12

Bangalore, India São Paulo, Brazil Nashville, TN Paris, France Frankfurt, Germany Buenos Aires, Argentina New Delhi Beijing, China Monterrey, Mexico

Quest for the Perfect Engine for the Garment Industry Apr 29-30

Bangkok, Thailand

Jul 29-30

TBD

Quest for the Perfect Engine™: With Plant Tour Aug 5-7

Salt Lake City, UT

Shop Floor Kaizen Breakthrough Instructor Training Apr 15-18 May 13-16 Aug 12-15 Oct 7-10 Oct 27-31

Monterrey, Mexico Shanghai, China Durham, NC Derby, UK Gurgaon, India

Sigma Kaizen Black Belt Week Week Week Week

2: 3: 4: 5:

Mar 10-14 Apr 7-11 May 12-16 Jun 16-20

Sigma Kaizen Green Belt Week 2: Mar 10-14, 2008 Week 3: Apr 7-11, 2008

May 13-16 May 13-16 Sept 9-12 Oct 14-17 Nov 11-14

Northlake, IL Durham, NC Durham, NC Northlake, IL Northlake, IL Durham, NC

Durham, NC São Paulo, Brazil Monterrey, Mexico Shenzhen, China Durham, NC

TBM Consulting Group, Inc. 4400 Ben Franklin Blvd. Durham, NC 27704 www.tbmcg.com

Corporate Headquarters 4400 Ben Franklin Boulevard Durham, North Carolina 27704 USA 1.800.438.5535

PRESORTED FIRST CLASS MAIL US POSTAGE PAID RALEIGH, NC PERMIT #2483

Q1.08


Managing Times, Q1 2008